Essay on Environmental Challenges Facing The American Auto Industry

Essay on Environmental Challenges Facing The American Auto Industry

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The Environmental Challenges Facing The American Auto Industry


A survey shows that environmental issues top the list of challenges facing the automotive industry, outranking cost

reduction for the first time in 14 years. The survey was conducted by DuPont and the Society of the Automotive

Industry. (DuPont,18, 2008)


Global competition resulted in less market share for U.S. car manufacturers and threatened company profits as more

foreign brands entered the U.S. market. The total market share of General Motors fell from 28.2% in 2000 to 17.6%

by 2014. High labor costs, product lines that emphasized large vehicles with significant gasoline use and a

looming global recession caused a crash in U.S. automaker profitability in 2008. American car manufacturers were

struggling to compete against better, more efficiently manufactured products from overseas companies. After

restructuring during the 2008 recession, U.S. automakers improved profitability and became healthier companies.

They began creating more advanced cars, hiring more employees in the United States and abroad, and began to

provide returns to investors once again. (Investopedia, April 14, 2015) Taking US automotive manufacturing between

1987 and 2002 as representative of a sector facing increased competitive intensity, MGI examined how the "Big

Three" US automakers responded to more productive Japanese entrants over the period.


In recent years, the concept of autonomous vehicles has captured the imagination of consumers. It is widely considered

the next ‘must have’ accessory for what is probably the most expensive consumer purchase many people will make

beyond their house. Automotive manufacturers have been under siege since the 1970s from ri...


... middle of paper ...


... itself scores extremely high and is largely considered

as an industry that can be trusted and is innovative.” Carbon emissions are the biggest problem personal vehicles face, as

marked by more than 60 percent of the survey’s responders. (Shelton, September 22, 2015)


In conclusion, With support from the US National Science Foundation and Department of Energy, a global benchmarking

study of the status of Environmentally Benign Manufacturing (EBM) has recently been completed. The study, completed

under the aegis of the World Technology Evaluation Center at Loyola College in Maryland, gathered information on

research and development around the world aimed at developing alternative methods for materials processing with the

purpose of minimising toxic material generation and optimising products and by-products for sustainability and reuse

characteristics.

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